Originally Posted by Rossj711
Wolf care to share your MM strategy? I'm never risking more than three percent on each trade. I am slow steady account gainer, averaging about seven to ten percent a month. Three days until my next trading month closes and if I sit be I'll be at about six percent for this month.
Are you using a hundred pit sl all the time? I do often, but I'm beginning to mold a different style of more buying or shorting into a move with a smaller stop size and a larger lot. Let me know what kind of experiences you have with this.
Howdy... I always suggest people need to set their risk and MM to your comfort zone--someone else may be more aggressive or risky then you prefer or can do...or they may be more conservative. You know your accounts and comfort zone better then I do. But FWIW I try to do 3-5%ish risk max on any one trade and my R:R is usually 1:1, 1:1.5 or 1:2--meaning in example if the chart is prime and right in levels and the pair can do it, then sure I'll risk 100 pips to make 100, or 140 or 200+ pips back... It depends on the trade for where I set my stop and IF the target I expect it to make is right for timing the entry..
My stops are based on the pair, and on what I believe the target could make AND where the Support and Resistance lines are for the pair, and whats driving it and how it moves typically. So no--I don't always use 100-pip stops for everything...I may use 80 or 60 or I may use 100 or 150--it depends on my trade/target and the pair. Its insane to use a 100 pip stop all the time especially if its only to make 40 pips in a trade--if you doubt that logic--then I'll trade you a crisp new $20 bill for your wrinkly old $100 bill and we'll call it square.
If you can only feel you can make 40 pips in a trade but you HAVE to risk 100 for stop--then something is wrong--you either missed it altogether, or you're not confident in your trade plan and are misreading the chart...or you are just are late in your timing for entry or trying to chase....or you're wrong in your view of the trade capability and, to me, such a trade is not worth taking and too risky to begin with. Be OK with telling yourself in such a win40 / risk100 trade that you are wrong...cuz ya are. The trade is unbalanced and favors the market--not the trader and you need to find as close possible BALANCE in your trading the markets. It will save you from losses later if you learn to break that cycle now.
Now yes some pairs NEED a wide stop for general fluidity cause they swing so much (crosspairs usually) and will give you a big reward if you are on the right side of the trade at the right time and are willing to wait... But the key there is timing your entry and recognizing the S&R areas key to the pair at the time and making those your stop, target and validation points. If you feel you are 100% right--then certainly wait it out for the market to give it to you for set up--time is the Traders ally in Forex...its not a race.
I try to limit myself to usually 2-3 open trades max at any one time, so at any one time I'm not risking more then I consider a 'safe' loss if they all suddenly decide to tank--but per trade its tried to be limited to 3-5% my account which some say is too much but for me it works....tho admittedly I do get sloppy on that sometimes and end up with 8% on the table
....but I've learned a LOT over the years and if I believe my plan has considered all the factors--I may bend my rules slightly if its worth it.. Of course I do have losing trades as everyone does...just probably not as many cause I'm not trading a ton...I am super picky about my trades trying to find only the highest probability trades that will work out based on my criteria--and because of that I am not in 2-3 trades every day of every week.. Be a selective opportunist. I am a mid term trader--which means I will hold a position open anywhere from a few hours to a few days or even a week and not get bugged over it.. I don't scalp or play the fast trades tryin to make a quickie win--that is a losing strategy I beat to death trying and it doesn't work at least for me....go for quality trades, not quantity trades...its all in my motto of trade safe and trade smart.
I try and look for and wait for what I view as optimum trade plans to occur and set up--I wait for them to form and I basically get in and not fuss with it--ride it out til I get stopped or it hits my target for the most part is my rule....which means I may not trade every day or even for a whole week if the charts are all crap to me....or I may have 2-3 or so trades per day going for a solid week if things are screaming... BUT by having such a rule it forces me to be super picky & critical with the trades I select when I am looking at charts and news/catalysts... I only had 4 trades played this week...this EUR/USD pair which took far too long from my analysis....I also had a EUR/JPY goin a couple times with a short making one pip target a big win, but the second target failed and stopped me out...as well as I played my favorite Parity game with the USD/CAD.. Really only 4 trades for a week--doesn't sound like much but to me it was decent for 400+ pips in a week... Big thing too many traders do wrong IMO is they think they have to take a bazillion trades or have trades goin on 5 pairs every stinkin day--they don't... The one thing I learned long ago the hard way in Forex is if you want to do it--you have to learn to Trade Safe and Trade Smart...which simply means planning and discipline.